How Do I Pay Medicare Premiums?

What Is Medicare?

Medicare is a government run health insurance program for senior citizens. It is something that will help them to be able to pay for their medical needs even though they are not able to bring in much income. It is a great way to be able to make sure that they do not have to fall into poverty just to be able to pay for their health care expenses.

How Is Medicare Payed For?

Medicare has a payment setup that is much different than most other government programs. Any individual who is working is paying into the system. They are getting taxed on the money that they are earning in order to pay into the Medicare system. They are paying for the people who are currently benefiting from the system. When you are prepared to go on the system, then other individuals will be paying for your benefits. It is a system that is set up to work forever. It is unclear if this will always work, but this is the way that the system is set up.

How Are Premiums Paid?

You are automatically going to have to pay the premiums for your Medicare insurance simply by the work that you do. You will pay out some of the money that you earn in taxes that go towards paying for this program. That makes it different from any private health insurance program that you might have. That is because with the private plan, you would select the plan that you like and pay into it. With the Medicare program, you will just have to pay in the premiums regardless of if you actually like the insurance that you are getting or not. Hopefully you find the insurance to be worth it.